Tom Lee: Concerns about AI capital expenditures are precisely a bullish market signal

Deep Tide TechFlow message: On July 28, according to BeInCrypto, Tom Lee said that the widespread concern in the market about cuts to AI capital expenditures actually suggests that this AI rally has not yet topped. He noted that market tops are typically accompanied by widespread optimism rather than general doubts, and he compared the current situation to the late 1990s period when investors repeatedly questioned Internet stocks such as Cisco—at the time, the skepticism sentiment instead signaled further upside.

Earlier, Steve Eisman, known for shorting the 2008 subprime mortgage crisis, warned that once hyperscale cloud providers cut AI spending, the market would face a significant downside risk, and he said bluntly, “Ultimately, it all comes down to Nvidia.” In response, Lee took the opposite view, saying the likelihood of hyperscalers cutting AI spending in the near term is low. In addition, Lee expects the Federal Reserve to manage the economy by shrinking the balance sheet rather than raising interest rates, and the results of this week’s two-day Federal Reserve meeting will serve as a test of the above judgment.